Ethic Hub Seeks to Make Money Accessible to Small Businesses in Developing Countries
The Ethic Hub project aims to give small producers from emerging countries access to loans and credit facilities.
As soon as blockchain technology captured the interest of the masses, a growing number of startups began to doubt the financial system and look for ways to make their credit and investment relationships more effective. The Ethic Hub project is among those aiming to connect investors and borrowers from different corners of the world.
According to Global Findex Database research, over 53% of adults did not have access to traditional financial services in 2014. As a result, they were deprived of endless possibilities to grow their business or put their ideas into practice.
Ethic Hub strives to shake up the status quo by democratizing finances and making credit and the best investment opportunities available to everyone.
The heart of the project is the transnational decentralized CrowdLending platform, which is built for small unbanked farmers from developing countries who cannot afford to pay the high interest rates attached to cash loans. The blockchain technology implemented by Ethic Hub will make the fundraising process more transparent and secure, allowing a significant reduction in the lending rate. Lenders should still find it attractive as it stands significantly above what they can get by keeping money in deposit accounts.
In this way, both parties will benefit from more attractive interest rates and the absence of intermediaries such as banks. This is possible due to the difference in the cost of money in their respective economic zones.
Moreover, the smart contracts concept will allow users to build their credit rating, which may serve as a tool to reduce interest rates and facilitate loan provision in the future.
"We have a know-how in projects' selection that allows us to build an especially competitive platform due to our low level of defaults (under 3% in our co-founder Pablo Chang Experience)," comments Ethic Hub Coordinator Node Jori Armbruster.
"Investors with social responsibility can decide what their money is going to be used for and also choose who they wish to help and if they wish so, to link with them through the platform. For risk dispersion, the platform will allow minimum investment amounts, and it will present project options in different countries and activities. We understand the problem of both investors and borrowers".
Ethic Hub ICO details
Ethic Hub is currently running the pre-sale stage, which will continue till March 9, 2018, giving early investors a 75% discount. The first ICO round will start in the second quarter of 2018, with a second round scheduled for the third quarter of 2019 and a third to follow a year later.